According to provisional calculations, sales in 2010 totaled approx.
510 million euros. The Group EBIT exceeded 55 million euros including one-off effects, with a pure operating result of approx. 32 million euros. The order intake increased by nearly 35 percent. Net debt was reduced to slightly less than 80 million euros. On the basis of a Group EBIT which has been adjusted for the operative earnings effects of Jena-Optronik (2010: approx. 29 million euros), Jenoptik expects an increase in EBIT of at least 20 percent to more than 35 million euros.
“Our strategic realignment, combined with the efficiency and cost reduction measures, is having an impact. The improved economic climate, in particular in the 2nd half of the year, gave an additional boost” said Jenoptik Chairman Michael Mertin in Jena on Tuesday in summarizing the Jenoptik 2010 fiscal year. Business performance in many areas was better than had been expected at the beginning of 2010. “For 2010 we are reporting growth together with improved cost structures” said the Jenoptik Chairman. Increases were attributable to strong demand for Jenoptik products, improved cost structures and a recovery in economic activity.
In addition to returning to growth and profitability, the focus was on liquidity and debt reduction in 2010. CFO Frank Einhellinger referred to the improved financial situation: despite the crisis year 2009 and the growth achieved in 2010, the Group succeeded in reducing net debt to slightly below 80 million euros. This compares with almost 160 million euros at the end of 2009. Various factors contributed to halving the debt: positive cash flows in the double figure million range resulted, amongst other things, from active inventory and receivables management. The capital increase in March 2010 raised approx. 22 million euros for Jenoptik. Cash inflows were also generated from sales of shareholdings, e.g. in caverion (in which Jenoptik had previously held a 15 percent stake) and Jena-Optronik GmbH (formerly 100 percent owned by Jenoptik). Michael Mertin: “We believe that we are ideally equipped for the future. We have created the right conditions both for organic growth as well as for acquisitions. Jenoptik stands on solid ground.”
Group EBIT showed significantly stronger growth than sales.
According to provisional calculations the Jenoptik Group will post sales of around 510 million euros in 2010 (prev. year 473.6 million euros). Strong growth came from the semiconductor industry, with the automotive industry recovering faster than expected in 2010. Jenoptik also won major orders in 2010, with some of these orders actually contributing to sales in the 2nd half-year 2010.
The Group EBIT for the 2010 fiscal year will exceed 55 million euros. This includes the overall positive one-off effects, primarily from the abovementioned sales of shareholdings. The Group operating EBIT for 2010 will total approx. 32 million euros (prev. year 7.8 million euros). This figure includes the current contributions to earnings from Jena-Optronik GmbH up to November 30, 2010 without capital gains. Including all effects, earnings before tax rose from minus 34.3 million euros to more than 40 million euros in fiscal year 2010. Jenoptik will benefit from the loss carried forward for the effective tax rate in 2010.
Strong order intake in the full fiscal year.
For the year 2010 as a whole the order intake will exceed 580 million euros (prev. year 432.8 million euros) a rise of nearly 35 percent on the level for the previous year. Without Jena-Optronik GmbH the order intake was more than 530 million euros. In addition to a product portfolio adapted to the needs of customers, this can be attributed to the stronger system business and the resultant increased added value shares, the major orders as well as catch-up effects. As a result of the higher order intake Jenoptik started the new year with an order backlog of approx. 355 million euros.
Information on the segments.
In the Lasers & Optical Systems segment, in particular the continuing strong demand for precision optics from the semiconductor industry in 2010 led to a double figure rise in sales and earnings. The segment is expected to post sales of approx. 185 million euros (prev. year 166.7 million euros). Growth in demand was also reported in the areas of lasers and laser processing systems for the automotive industry. The demand for laser processing systems for the manufacture of thin-film solar cells was below expectations in 2010. Systems for the manufacture of crystalline solar cells were newly launched. Jenoptik countered the general high downward pressure on prices in the sector through improved manufacturing processes and modular system concepts which are currently enjoying increased demand.
The Metrology segment will also report growth in sales to more than 110 million euros (prev. year 96.0 million euros), with both divisions contributing to this rise. The Industrial Metrology division saw a recovery in the automotive industry and posted a small increase in sales. After generating comprehensive cost savings in 2009 it is now showing a small positive EBIT, in particular as a result of a very good 4th quarter – compared with multi-million losses in the previous year. Traffic Solutions, which essentially remained stable through the crisis year of 2009, won a key major order at the beginning of 2010. This was accounted for in full during the 3rd quarter and made a significant contribution to the growth in sales and earnings.
The Defense & Civil Systems segment reported a continuation of its stable performance; its contribution to sales and earnings remaining virtually unchanged compared with the previous years. Sales are expected to total around 205 million euros, the same as in the previous year (prev. year 205.3 million euros). Long-term major orders are a characteristic feature of the business, with Jenoptik winning three such orders in the fiscal year just past, together totaling nearly 45 million euros. A few days ago Jenoptik was awarded the larger of two partial orders for the new PUMA infantry fighting vehicle in the total sum of almost 40 million euros. Both the overall trend towards increased security, as well as the significant new major orders, continue to contribute towards the segment-s stable course of business.
The positive trend expected to be maintained in 2011.
“In 2011 we will continue our strategy of sustainable growth and the further development of the Group in accordance with our long-term strategic agenda” said Michael Mertin. Jenoptik has made a positive start to the new fiscal year with a good order backlog and a major order. “This gives us grounds for optimism, despite the fact that the volatility of the financial markets is continuing” said Michael Mertin.
Providing the development of the economic environment remains stable to positive, Jenoptik plans to achieve a further growth in sales and a marked rise in earnings for the current fiscal year. In this context, the main impulses will come from the Group-s increasing internationalization and, on the earnings side, from the permanent improvements in processes which the Group will consistently pursue in 2011.
In the 2011 fiscal year the Group expects to make up for the loss of sales from Jena-Optronik GmbH, producing group sales of at least 510 million euros (sales in 2010 excluding Jena-Optronik: approx. 478 million euros). “We expect the growth to come in particular from the Lasers & Optical Systems and Metrology segments” said Michael Mertin. The Group EBIT is expected to rise at least 20 percent and thus at a higher rate in proportion to sales and to come in at more than 35 million euros (EBIT 2010 excluding Jena-Optronik: approx. 29 million euros). “The goal is to achieve sustainable profitability for the Group” said Michael Mertin.
As an integrated optoelectronics group, Jenoptik divides its activities into five divisions: Optical Systems, Lasers & Material Processing, Industrial Metrology, Traffic Solutions and Defense & Civil Systems. Its customers around the world mainly include companies in the semiconductor and semiconductor equipment manufacturing industry, automotive and automotive supplier industry, medical technology, security and defense technology as well as the aviation industry. The Group was created out of the former Kombinat VEB Carl Zeiss Jena in 1991, as a result of the German reunification. The Jenoptik Group headquarters are in Jena (Thuringia). In addition to several major sites in Germany Jenoptik is represented in nearly 70 countries and has production sites abroad in the USA, France and Switzerland as well as shareholdings in India, China, Korea and Japan. JENOPTIK AG is listed on the Frankfurt Stock Exchange and included in the TecDax index.
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